E-Commerce

Ikmal

E-COMMERCE

Question:

Social network,Twitter and virtual worlds are e-commerce mechanisms.Discuss.

Answer:

The marketplace is no longer dominated by large manufacturers with extensive marketing budgets. Because of the internet, and particularly because of social networking, small and medium-sized manufacturers now have the ability to reach the same audiences as their larger competitors. For instance, organizations that are active on Facebook have the potential to reach at least 70 million potential customers. That's a lot more consumers than any small or medium-sized organization could have reached prior to the advent of social media. Thanks to social networking, every firm can compete for the attention of the same large audience, giving small and medium-sized businesses the leg up they need to survive in today's economy. Social network such as Facebook,Twitter,Myspace,Blog and the other else are one of the e-commerce mechanism. Social Networks have gained major popularity and they are part of everyday life for many people in the world. Economic transactions often rely on trust. For instance,sellers usually know more than buyers about items or services offered and could misrepresent them. Without trust,mutually beneficial transactions may not take place, resulting in economic loss. Fortunately, with repeated transactions, reputations can encourage truthful behavior and have been applied to e-commerce in the form of ratings, such as those used by eBay. However, reputation mechanisms can be manipulated through collusion by groups of friends or the creation of false identities. One approach to this problem uses the growing availability of online social networks. These consist of links among individuals indicating various social relationships.